Panama
website of the Indian embassy http://www.indempan.org/
population - 3 million
GDP - 25 billion dollars in 2008
The geographical location has made Panama as one of the most important shipping passage of the world.
The economy is service-based with revenues from the Canal, off-shore financial services, free trade zone and shipping registry. These account for 74 % of the GDP.
It is a dollarised economy , with free circulation of US $ along with local currency.
The country has abundant natural resources, minerals and forestry.
Colon is the second largest Free Trade Zone in the world, after Hongkong.
Panama has the largest number of ships registered in the name of the country
Has the highest GDP per capita in Central America .
bananas,sugar and coffee are main agro exports.
The Panama Canal is an important source of revenue for the Government. 5% of the world trade passes through the Canal. The Government has drawn up a 5 billion dollar project to expand the Canal for larger ships to pass through. The project will start in 2007.
Colon Free Zone (CFZ) is the largest Free Trade Zone in the western hemisphere and the second largest in the world. It has an area of 400 hectares and has 2000 companies. US Dollar circulates freely.
The zone offers free movement of goods and complete exemption from taxation on imports and exports. no corporate income tax, dividend tax,customs duty or federal or municipal taxes.
Panama has plans to expand the services sector including IT and are keen to attract foreign investment.
There is also a plan to set up a refinery with a capacity of 350,000 bpd. Panama ’s principal items of exports are banana, sugar, coffee, shrimp and fish-meal. Most of the trading is from the Free Zone. Both Panamanian and foreign companies use Panama as the hub for reexports to other countries in the region.
Panama is a part of the Central American Integration System (SICA) which includes besides Panama – Belize , El Salvador , Nicaragua , Costa Rica , Guatemala , Honduras and Dominican Republic . While Panama is part of the political system of SICA, it has not joined the common market of SICA.
Panama has signed FTA with Taiwan and Singapore. it has concluded a FTA with USA in December 2006.
Panama has diplomatic relations with Taiwan and not with the People’s Republic of China . Both the Chinas have made substantial investments in Panama as well as the Colon Free Zone, and remain prominent trading partners of Panama .
US$5.25 billion Panama Canal Expansion Project.
There are opportunities for contracts and subcontracts in this project for indian companies. General Information about the Canal Expansion Project can be obtained on the website http://www.pancanal.com/eng/plan/documentos/propuesta/acp-expansion-proposal.pdf The work involves construction of two locks – one on the Pacific side and one on the Atlantic side - and the excavation for deepening the navigation channels. There will be 5 dry excavation projects and the Gatun Lake Dredging project. All these will be stand-alone contracts.
Companies who register themselves in the Bidders’ Registry, which is available on the website: http://www.pancanal.com/eng/procsales/buy.htm will be notified as and when new tenders are floated.
Bilateral Trade (US $ million)
Principal items of India ’s exports : textile products(about 50%), pharmaceuticals, engineering goods, chemicals, and rubber products. Principal items of India ’s imports sea vessels, vegetable oils, and forest products like wood. 100 panamanians got IT training in Infosys institute in Mysore Dec-March 2007. Govt of panama paid airfare and Infosys gave local hospitality iFlex and Infosys have got contracts for banking solutions in Panama Indian companies have been participating in the annual Expocomer Trade fair in panama in recent years. coordinated by ITPO. Although Panama is a small market of 3 million, it is a hub for reexport to central america, caribbean and Colombia and Venezuela. There are 14000 Indians of which some have business in the Free Zone
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commerce and industry ministry